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The share price has gone up over the last year so why has the Sustainable Pioneer Fund (SICAV I) not paid a dividend?

The share price performance and the funds income performance are two very separate things and are calculated differently:

Dividends are made up of the profits or the net income of the fund which is then divided up amongst the shareholders. The income of a fund comes from dividends received from the companies it invests in and interest on that income, minus the fund’s expenses over the year which leaves the net income. If there are little or no dividends paid by the companies invested in to create a fund income, then any fund expenses will result in a negative net income and there will be no money available to distribute as dividends. This is sometimes the case with funds that invest in small, pioneering companies or those in the early stages of development as they need to retain their earnings so as to finance their product innovation and growth.

The positive performance of the fund, as shown in the tables and graphs on the performance tab, is a reflection of the change in the net asset value (NAV) of the fund or share class. The NAV is affected by changes in the share prices of the companies a fund invests in and the influx of money into the fund (through customers making investments in it) – not by the elements affecting the income of the fund. So it is possible for the fund to make no money in a year, but for the NAV to have increased and therefore you could make money from investing in the fund if you sold your shares at the higher price.

Important Information

Triodos Bank NV (incorporated under the laws of the Netherlands with limited liability, registered in England and Wales BR3012). Authorised by the Dutch Central Bank and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request. Firm reference number 183366.